Jarden Direct provides a digital trading platform and multi-currency account that allows you to trade New Zealand, Australia, UK, and US shares, bonds, and ETFs.
Unlike other online brokers, Jarden Direct gives you access to a client experience team and trading desk so you can place trades online or over the phone. Marketed as a DIY investment platform, Jarden Direct does not offer investment advice, though they do provide real-time price quotes and partner with Shareclarity to provide fundamental value info on companies in NZ, AU, and HK.
This review will show you what you can expect from the trading platform, alternatives, and more.
Inside this review
- Who are they designed for?
- How it works
- Tradable markets
- Tradable assets
- How are dividends handled?
- Fees
- Pros and cons
- Alternatives
- Comparisons
- FAQs
- Verdict
Who are they designed for?
Jarden Direct is designed for:
- Large-volume share investors that prefer to buy in real-time rather than dealing with brokers or other platforms.
- Beginner (but higher-end) investors looking for minimal brokerage fees on trades over $10,000.
- Data and research. The platform provides live Who owns them and are they safe?
Jarden Securities Limited (Jarden) is the owner and operator of the Jarden Direct (formerly Direct Broking) investment platform, which is an accredited NZX Market Participant. Jarden and ANZ Bank New Zealand Limited (ANZ New Zealand) have formed a strategic collaboration. As part of this partnership, ANZ New Zealand customers can apply for a Jarden Direct account.
Is Jarden Direct safe? Yes, all investments are held in a “bare trustee” structure by FNZ Limited (NZ-based) or Citibank (non-NZ-based). Bare trustees function only for the benefit of beneficiaries, the investors who use Jarden Direct. If Jarden Direct should fail, your funds will be safely kept by FNZ for your benefit and on your behalf.
How it works
It's simple to open an individual or joint Jarden Direct account online. Simply follow the steps below:
- Create a login and provide a unique security code to secure your account.
- Fill out your personal information and upload identification and a bank statement.
To get started, you'll need the following items:
- Your smartphone, so you may receive your one-of-a-kind security code.
- Your IRD (Inland Revenue Department) or tax number.
- Your passport or your New Zealand driver's license.
- A recent bank statement.
- Your Common Shareholder Number (CSN) if you have one (can add this later).
Tradable markets
You can trade bonds, ETFs, and shares in the following tradable indices:
- New Zealand Stock Exchange (NZX)
- Australian Securities Exchange (ASX)
- London Stock Exchange (LSE)
- New York Stock Exchange (NYSE)
- National Association of Securities Dealers Automated Quotations (NASDAQ)
Tradable assets
Jarden Direct allows you to:
- Buy and sell stocks in real time in stock markets in New Zealand, Australia, the United Kingdom, and the United States. Occasionally, Jarden Direct may also provide access to IPOs.
- Invest in New Zealand government bonds, local authority stock, corporate bonds, bank bonds, capital notes, and perpetual instruments, among other fixed interest assets.
- Invest in ETFs in New Zealand, Australia, the UK, and the US.
How are dividends handled?
Payments of the NZX Cash Dividend are automatically recorded in your portfolio.
If you get a dividend from a foreign country, it will be converted to the local currency. For instance, if you receive a US$100 dividend from Microsoft stock, your Jarden Direct USD account will be credited with US$100. The interest rate for non-NZD accounts is 0.00%, unlike NZD deposits. An FX margin is applied if you then shift foreign balances back to NZD (0.89%).
Fees
- For a fixed price of $29.90, Jarden Direct allows anyone to trade online on the NZX (or 0.20% of the trade value, whichever is the greater). Trading NZX shares costs $29.90 for trades up to $15,000 plus 0.20% of the trade value over $15,000.
- Trading on the ASX is also possible, with fees starting at A$29.00 per trade.
- Commission on internet trades in Australia is A$29 per trade up to A$30,000, and 0.30% on amounts over A$30,000).
- For US shares, fees are the greater of US$69.50 or 0.60% for approved NYSE and NASDAQ Listed Securities.
- On UK shares, fees are the higher of £69.50 or 0.60% for approved LSE Listed Securities, denominated in GBP.
- There are no yearly or inactivity fees.
Pros and cons
Pros
- Real-time price quotes.
- Pays interest on cash deposits at a rate of 0.25% per annum on cash balances up to $50,000 and 0.50% per annum on balances over $50,000.
- Lower brokerage fees on large trade sizes: 0.20% on NZX trades above $15,000.
- Access to Shareclarity research, which provides fundamental value information on 300 businesses listed in New Zealand, Australia, and Hong Kong.
- Transparent FX fees with the exchange rate offered at the market midpoint rate (often known as the "spot rate"), with a currency conversion margin of 0.89% of the overseas currency value.
- Watchlist functionality and ongoing news and research means investors can add investments to watchlists and track their performance.
Cons
- No mobile trading app although the web application can be accessed on your browser from a desktop, laptop, or phone.
- Fees for a small trade are relatively high. Jarden Direct charges a minimum of $29.90 per trade, implying that investors will only obtain good value and scale on larger purchases.
- As a DIY platform, analyst reports that do in-depth research on firms are not available on the platform. You'll have to do your own research, including reading annual reports and keeping up with market updates.
Alternatives
- Sharesies. The first low-cost internet share investing platform in New Zealand. Users can invest as little as one cent in the New Zealand, Australian, and US stock markets using Sharesies. A total of 1.3 billion dollars has been invested in the last three years. Customers have started Facebook groups, appeared in advertisem*nts, and even purchased stock.
- ASB Securities. As the best-known online share brokerage platform in New Zealand, its user interface is simple to use and allows for buy/sell trading via a desktop or mobile browser. It offers free email-based information including a daily securities brief and monthly share market reports. Fees start at $15 per trade, with commissions capped at 0.30% on trades over $10,000.
- InvestNow. It was formed in 2017 with the objective of giving New Zealanders more choices and transparency when it came to managing their money through managed funds. The DIY-styled platform has grown to feature 149 different funds managed by 25 different fund managers since its debut. InvestNow is a first for its kind in New Zealand since it guarantees "no account or transaction fees.”
- Hatch Invest. Its US registered broker-dealer provides access to approximately 3,200 firms and 900 ETFs (Vanguard, BlackRock, Invesco, State Street) that are listed on the NYSE and NASDAQ. Hatch allows you to buy full and fractional shares in individual firms as well as Exchange Traded Funds (ETFs) registered on US stock exchanges.
- Stake. When it comes to no-fee stock trading in the United States, Stake is the market leader. It provides web and app-based trading, market insights, and a choice of over 4,000+ investment options in the US market, with new securities added weekly as new companies complete their IPO processes.
- Tiger Brokers. It is the largest online broker for Chinese investors, accounting for about 60% of all online trading volume by Chinese investors. In 2019, the company was listed on the NASDAQ, with the goal of providing a low-cost, broad product to local markets around the world.
Comparisons
Side-by-side comparisons to quickly pit Jarden Direct against competing brokers.
- ASB Securities vs Jarden Direct
- Direct Broking vs Jarden Direct
- Hatch Invest vs Jarden Direct
- Jarden Direct vs Tiger Brokers
- Sharesies vs Jarden Direct
- Stake vs Jarden Direct
FAQs
Yes. Jarden Direct allows self-directed investors to participate in stocks and bonds. If you need more information about stock transfers, the customer service department is available at 0800 805 777 between 8:30 a.m. and 6 p.m., Monday through Friday.
How old do you need to be to sign up?
To be eligible to open an account you must be over 18 years of age.
How do I deposit funds into my account?
For New Zealand dollar (NZD) deposits, NZD can be placed into the NZD cash account using your usual NZD payment method, such as bill payment or direct credit. Your cash account information can be found on the deposit section of the accounts page.
International funds can only be deposited through international money transfer (IMT) because they are cleared funds.
What is the minimum deposit required?
There is no minimum deposit required to open an account or make a trade.
How long does it take to withdraw funds?
On any NZ business day before 4:00pm NZT, funds can be withdrawn (overnight) from your NZD CMT. If you request a withdrawal on a New Zealand public holiday, a weekend, or after 4:00pm NZT, cash will be withdrawn the next business day overnight.
How does Jarden Direct make money?
Jarden Direct is compensated by the companies and individuals for whom it acts (e.g., brokerage of a percentage of the dollar amount subscribed for by the investor, plus a percentage as a firm allocation fee plus if in a syndicate as a lead manager, a percentage as arranger or a fixed fee amount).
In some cases, Jarden Direct may also function as an issuer's underwriter, which means that the issuer will pay an underwriting fee in exchange for its taking on the risk of supporting the transaction. The amount of the underwriting charge will differ depending on the transaction's risk.
Verdict
Jarden Direct is a simple online share trading platform that may be accessed by a web browser on a computer, phone, or tablet, with phone and email support available. With its exclusive partnership with Shareclarity, it provides active share investors with unlimited live share data and depth.
Jarden Direct competes with other platforms in terms of fees. However, it is more expensive for practically all trade sizes due to the low-cost nature of platforms like Sharesies and Interactive Brokers.
As an investment enthusiast with a deep understanding of online trading platforms, I can provide valuable insights into the concepts mentioned in the article about Jarden Direct. I have hands-on experience in navigating digital trading platforms and analyzing the intricacies of brokerage services.
Concepts Covered in the Article:
1. Jarden Direct Overview:
- Digital Trading Platform: Jarden Direct is a digital trading platform offering multi-currency accounts for trading shares, bonds, and ETFs in New Zealand, Australia, the UK, and the US.
- Client Experience Team: Differentiating itself from other online brokers, Jarden Direct provides access to a client experience team and a trading desk for online and phone-based trades.
- DIY Investment Platform: Marketed as a DIY investment platform, it does not offer investment advice but provides real-time price quotes and partners with Shareclarity for fundamental value information.
2. Ownership and Safety:
- Ownership: Jarden Direct is owned and operated by Jarden Securities Limited, an accredited NZX Market Participant, and has a strategic collaboration with ANZ Bank New Zealand Limited.
- Safety: Investments are held in a "bare trustee" structure by FNZ Limited (NZ-based) or Citibank (non-NZ-based), ensuring the safety of funds even if Jarden Direct were to fail.
3. Account Opening Process:
- Steps to Open an Account: Opening an individual or joint Jarden Direct account involves creating a login, providing personal information, and uploading identification and a bank statement.
- Required Items: Necessary items include a smartphone for security codes, IRD or tax number, passport or NZ driver's license, and a bank statement.
4. Tradable Markets and Assets:
- Markets: Tradable indices include NZX, ASX, LSE, NYSE, and NASDAQ.
- Assets: Jarden Direct allows trading of stocks, bonds, and ETFs in the mentioned markets, and occasionally provides access to IPOs.
5. Dividend Handling:
- NZX Cash Dividend: Automatically recorded in the portfolio.
- Foreign Dividends: Converted to local currency; FX margin applied if shifting foreign balances back to NZD.
6. Fees:
- NZX Trades: Fixed price of $29.90 or 0.20% of the trade value, whichever is greater.
- ASX and US Trades: Fee structures vary based on trade value.
7. Pros and Cons:
- Pros: Real-time quotes, interest on cash deposits, lower brokerage fees for large trades, access to Shareclarity research, transparent FX fees.
- Cons: No mobile app, relatively high fees for small trades, DIY platform without in-depth analyst reports.
8. Alternatives:
- Sharesies, ASB Securities, InvestNow, Hatch Invest, Stake, Tiger Brokers: Mentioned as alternatives with brief descriptions of their features.
9. FAQs:
- Eligibility: Jarden Direct is for self-directed investors participating in stocks and bonds.
- Age Requirement: Users must be over 18 years old to open an account.
- Deposit Process: Details on deposit methods and minimum deposit requirements.
- Withdrawal Time: Withdrawals can be made on NZ business days before 4:00 pm NZT.
10. Revenue Model:
- Compensation: Jarden Direct is compensated by companies and individuals for brokerage services and may function as an issuer's underwriter.
11. Verdict:
- Overview: Jarden Direct is described as a simple online share trading platform with a focus on active share investors, competing with others in terms of fees.
In conclusion, Jarden Direct offers a comprehensive platform for trading and investing, catering to different investor profiles, with its strengths and weaknesses clearly outlined in the review.
